Correlation Between JPMorgan Nasdaq and Utilities Select
Can any of the company-specific risk be diversified away by investing in both JPMorgan Nasdaq and Utilities Select at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining JPMorgan Nasdaq and Utilities Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan Nasdaq Equity and Utilities Select Sector, you can compare the effects of market volatilities on JPMorgan Nasdaq and Utilities Select and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in JPMorgan Nasdaq with a short position of Utilities Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Nasdaq and Utilities Select.
Diversification Opportunities for JPMorgan Nasdaq and Utilities Select
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JPMorgan and Utilities is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Nasdaq Equity and Utilities Select Sector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Utilities Select Sector and JPMorgan Nasdaq is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on JPMorgan Nasdaq Equity are associated (or correlated) with Utilities Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Utilities Select Sector has no effect on the direction of JPMorgan Nasdaq i.e., JPMorgan Nasdaq and Utilities Select go up and down completely randomly.
Pair Corralation between JPMorgan Nasdaq and Utilities Select
Given the investment horizon of 90 days JPMorgan Nasdaq is expected to generate 1.2 times less return on investment than Utilities Select. But when comparing it to its historical volatility, JPMorgan Nasdaq Equity is 1.3 times less risky than Utilities Select. It trades about 0.25 of its potential returns per unit of risk. Utilities Select Sector is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 8,469 in Utilities Select Sector on July 27, 2025 and sell it today you would earn a total of 670.00 from holding Utilities Select Sector or generate 7.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Nasdaq Equity vs. Utilities Select Sector
Performance |
| Timeline |
| JPMorgan Nasdaq Equity |
| Utilities Select Sector |
JPMorgan Nasdaq and Utilities Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Nasdaq and Utilities Select
The main advantage of trading using opposite JPMorgan Nasdaq and Utilities Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Nasdaq position performs unexpectedly, Utilities Select can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Utilities Select will offset losses from the drop in Utilities Select's long position.| JPMorgan Nasdaq vs. Vanguard Mega Cap | JPMorgan Nasdaq vs. Vanguard Institutional Total | JPMorgan Nasdaq vs. VanEck Semiconductor ETF | JPMorgan Nasdaq vs. Vanguard Mid Cap Growth |
| Utilities Select vs. iShares MSCI ACWI | Utilities Select vs. SPDR SP Dividend | Utilities Select vs. iShares Core SP | Utilities Select vs. VanEck Gold Miners |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
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